MERCHANDISE

Question

1. The grocery department is the engine of the store's turnover what will at least contribute to as a % of your total store turnover.
2. The department is essentially broken up into two areas.

Answer 1

When discussing the grocery department's contribution to a store's turnover and its structure, here are some insights:

Contribution to Store Turnover

1. Percentage Contribution: The grocery department typically contributes a significant percentage to the total store turnover. This can range from 30% to 60% depending on the type of store and the product mix. In grocery-focused retailers, it may be on the higher end of this range, while in stores with diverse offerings, it might be lower.

Breakdown of the Grocery Department

2. Two Main Areas:
   • Perishables: This area includes fresh produce, meat, dairy products, bakery items, and other items with a limited shelf life. These products are crucial for attracting customers and driving repeat visits due to their necessity and frequent purchases.
   • Dry Goods & Non-Perishables: This encompasses canned goods, packaged foods, snacks, beverages, and household items. These items tend to have a longer shelf life and contribute to the overall sales volume but may have lower margins compared to perishables.

By focusing on managing and optimizing both areas, a grocery department can significantly enhance the overall performance of a retail store.